November 07, 2023 | Industry News
November 2023 Regional Market Report News
The anchovy category continues to experience shortages due to adverse weather in Peru. At this time, the category remains unchanged since our last update. We will continue to source from alternative regions until El Niño subsides in Peru and will provide monthly updates on the category until conditions recover.
Due to adverse weather conditions in the primary growing regions for roasted red peppers, the overall availability of raw materials has been significantly reduced in 2023. The effects of El Niño on Peruvian growers, as well as excessive heat and lack of rain in Spain and Turkey, have resulted in a massive reduction in overall yield this year. Despite these challenges, Roland Foods remains committed to sourcing these products and we are working closely with our long-term partners to keep our roasted red pepper and pimiento products in stock for our customers.
Global Supply Chain and Logistics Updates
Middle Eastern Logistics Update
As of now, container ports in Israel remain open and functional, including the country’s road network and railways. The port authority has vowed by any means necessary they will keep the terminals operational, and so far, major shipping lines continue to call the nation’s ports daily.
To limit the potential effect on our supply chain, we have made the decision to divert our cargo away from Ashdod and instead ship through Haifa, which is further from the escalated conflict in Gaza.
A Refined Outlook on Container Imports
As we approach the end of the calendar year, global imports have started their projected decline. However, levels are still relatively strong when compared to pre-pandemic figures, an indication that consumer spending has remained robust throughout the year.
There is some sentiment among ocean carriers that demand may be diminishing. We are witnessing carriers’ decisions to cut sailing and slow cruising speeds to artificially limit capacity, which is putting a strain on schedule reliability. Last month the National Retail Federation revised its retail sales forecasts to be at the lower end of the 4%-6% year-over-year growth.
Taking a more refined look at the imports reaching American shores, cargo from Asia is increasing its share, while European imports are declining. This influx of Asian imports is to be expected, as consumer products for the upcoming holidays are primarily produced in Asia. Domestically there has also been a shift of cargo returning to the West Coast. This can likely be attributed to the official ratification of the port worker’s labor contract.
At Roland Foods we are relieved to see supply chain constraints improving overall but are always ready and anticipating potential challenges.